Powell says that, unlike the dotcom boom, AI spending isn’t a bubble: ‘I won’t go into particular names, but they actually have earnings’

Federal Reserve Chair Jerome Powell has expressed optimism about AI spending, stating that it differs from the dotcom boom because it is backed by actual earnings. This insight is significant as it suggests a more stable investment environment in AI technologies, although he cautioned that growth is not evenly spread across the market and is concentrated among a few companies. Understanding this dynamic is crucial for investors and policymakers as they navigate the evolving landscape of technology investments.